Company Profile

Talented Global Hunting (06100) is a full-service talent service provider, operating China's leading mid-to-high-end talent online service platform - Hunting Network, and created China's largest professional social network - hiring the same way. Most of the individual users of Hunting.com are white-collar professionals with bachelor's degree or above, more than three years of work experience or annual salary of more than 100,000 yuan.

As of the end of 2017, the talented world has been hiring and absorbing about 38.9 million registered individual users, 248,600 certified corporate users and 101,800 certified headhunters. According to industry reports, Hunter Network is China's largest online talent service platform focused on high-end talents in terms of total revenue in 2017.

IPO information

Hong Kong Public Offer Shares: 8,800,000 (10%)

International Offer Shares: 79,200,000 (90%)

Over-allotment option: 13,200,000 (additional 15%)

Issue price: HK$28.50-35.50

Market capitalization: HK$14.123-175.92 billion

Board lot size: 200 shares

Tangible net assets per share after issuance: HK$4.53-5.52

Joint Sponsor: Morgan Stanley Asia Limited, J.P. Morgan Securities (Far East) Limited

Underwriters: Morgan Stanley Asia Limited, JP Morgan Chase Securities (Asia Pacific) Limited, Huatai Financial Holdings (Hong Kong) Limited, UBS AG Hong Kong Branch

Callback mechanism: 15 times or less (not more than 20%); 15-50 times (30%); 50-100 times (40%); 100 times or more (50%)

Prospectus: 2018/6/19 (Tuesday) to 2018/6/22 (Friday)

Pricing date: 2018/6/22 (Friday)

Announcement of the distribution result: 2018/6/28 (Thursday)

Listing transaction: 2018/6/29 (Friday)

development path

Talented in the world to launch the recruitment network "liepin.com" in 2011, marking the group's official business. Hunter offers a wide range of tools and solutions for job seekers to connect job seekers with attractive career opportunities and build a bridge between users and quality headhunters and employers. The Group also provides customized talent acquisition services for corporate users. Companies can identify and recruit specific talents in a large and diverse group of candidates in an efficient and targeted manner.

At present, the Group's business is mainly carried out through three business entities: Wanshidao, Tongdao Elite and Hunting Road. Wanshidao's main business is to provide offline talent services; the same elite provides talent services through hunting network; For investment holding. Since its inception, the Group has carried out five rounds of financing and has been converted into three types of convertible preferred stocks through restructuring, namely: A-1 round of convertible preferred shares with a total consideration of approximately US$68.89 million and a total consideration of RMB 60 million. A-2 round of preferred shares, A-3 round of convertible preferred shares with a total consideration of approximately 557 million yuan.

Schematic diagram of shareholding structure:

milestone:

In 2011, the online business started and launched the recruitment network "liepin.com"; completed the A-round and A-round financing led by Matrix.

In 2012, the round B financing led by Matrix was completed.

In 2014, the company completed the C-round financing led by Warburg Pincus; launched a mobile app that connects professionals, headhunters and HR managers – hiring the same channel.

In 2015, a closed-loop product assisted by headhunting was launched – the interview was fast.

In 2016, it completed the D-round financing led by China Mobile Innovation Industry Fund and Matrix; launched a headhunting auxiliary closed-loop product – fast entry.

In 2017, the online platform recorded approximately 38.9 million registered individual users, 248,600 certified corporate users and 101,800 certified headhunters; launched a panoramic resume viewing and downloading service; and launched resume consulting services to registered individual users.

Profit model

Hunting is meant to be “headhunting and recruiting”, and it is the talented world to create an ecosystem that connects the massive talent pool with enterprise users, headhunters and other talent service providers around the hunting network platform, aiming to make each of them Maximize value in your career or business cycle. Most of the individual users of the platform are white-collar professionals with bachelor's degree or higher degree, more than three years of work experience or annual salary of more than RMB 100,000. Enterprise users include more than 221 Chinese Fortune 500 companies, of which nearly 40% are generated from corporate customers in the Internet and financial industries. As of the end of 2017, the Hunter Network platform connects and serves approximately 38.9 million registered individual users, 248,600 certified corporate users and 101,800 certified headhunters.

The majority of the Group's revenue comes from providing talent acquisition services to corporate customers. The services are mainly in the form of customized subscription packages for different fixed fees, such as resume downloads, and transaction-based, based on the annual salary and recruitment phase of the specific position. A fixed-cost talent acquisition service. The pricing of the subscription package is mainly based on the talent acquisition service selected by the corporate customer, usually ranging from RMB 1-4 million per package, usually for a period of 12 months. In addition, the Group also receives a small amount of income by providing professional employment services (such as premium membership services and resume consulting services) to registered individual users and introducing personal user traffic to other Internet service providers.

The main products and services available to registered individual users include: personal career files; job opportunities and headhunting recommendations; professional social networking and professional content; senior membership services; resume consultation. The main products and services available to certified enterprise users include: job posting; resume search, recommendation and management; internal collaboration tools for human resources; panoramic resume download; intention communication with job seekers; inviting candidates; hiring 2.0; Salary report. The main products and services available for headhunting include: job posting; resume recommendation, resume download and management; headhunting auxiliary closed-loop service. In addition, the Group also launched transaction-based services, such as the headhunter-assisted closed-loop talent solution that guides job seekers' interviews – quick interviews; the headhunting assisted circulation talent solution that guides job seekers to join the job – quick entry; headhunting directly recommend resume , background investigation, recruitment process outsourcing, etc.

The Group provides basic talent acquisition services to all certified companies free of charge, including job postings, search, recommendation and management, internal collaboration tools for human resources, and corporate websites. In addition to basic talent acquisition services, corporate customers can also purchase customized subscription packages to obtain advanced talent acquisition services to further optimize the recruitment process. In addition, corporate customers may also choose to purchase headhunting-assisted closed-loop talent acquisition services (mainly for quick interviews and fast entry), and charge a flat rate based on the annual salary range offered by specific positions after completion of certain recruitment stages.

Industry overview

China's human resources service market includes talent acquisition services, human resources outsourcing services and other human resources services. As a fast-growing industry, the scale of China's human resources service market increased from approximately RMB 158.2 billion in 2013 to approximately RMB 34.3 billion in 2017, with a compound annual growth rate of 21.4%. It is expected to compound in 2017-2022. The annual growth rate is maintained at a high level of 19.7%. The main drivers include the increasing budget of the company for human resources services and the increased willingness to pay for quality customized services.

Talent acquisition services mainly include headhunting and talent recruitment, recruitment process outsourcing, online recruitment related services and campus recruitment services. With an annual salary of 100,000 yuan as the dividing line, the medium and high-end talent market for talent acquisition services is defined as an average annual salary of more than 100,000 yuan. The middle and high-end talents are mainly middle-level managers and administrative staff with many years of work experience, usually passive job seekers. They currently have stable and well-paid positions, but they do not resist exposure to more career opportunities. In addition, mid- to high-end talents tend to rely more on professional social networks to build bridges and enrich their careers for quality career opportunities.

In 2017, China's mid-to-high-end talent acquisition service market revenue was 96.7 billion yuan, accounting for 85.4% of the total talent acquisition service market. It is estimated that by 2022, the income of the medium and high-end talent acquisition service market will increase to 243.3 billion yuan, with a compound annual growth rate of 20.3%, accounting for 86.2% of the total revenue of the overall talent acquisition service market. China's mid- to high-end talent acquisition service market is highly fragmented, with more than 17,000 recruitment companies, most of which are traditional offline recruitment companies and about 350,000 independent headhunters. In terms of revenue in 2017, the top ten service providers accounted for only 2.9% of the market share, and the average commission rate for headhunting was about 22%.

Financial overview

Advantages and prospects

1. Having an innovative business model focused on connecting and controlling a large and growing network of talent, business, headhunters and other talent providers.

2. China's largest online talent service platform focusing on high-end talents, connecting about 38.9 million registered individual users and 248,600 certified enterprise users, counting 118,800 certified headhunters.

3. Unique talent service platform promotes closed-loop transactions and realizes opportunities for realisation.

Risk and crisis

1. Faced with fierce competition from online and offline service providers (especially professional social networking platforms), individuals and business users may be lost.

2. The Platform collects, uses or discloses personal information or other privacy related matters or will be subject to stricter supervision, which in turn affects brand reputation and user trust.

3. The earnings record of the previous period is not good and the future profitability is also unclear.

Talented world

Level 8 B2, main office tower , financial park complex, 87000, Labuan